While other MediaPost newsletters and articles remain free to all ... our new Research Intelligencer service is reserved for paid subscribers ...

Subscribe today to gain access to the every Research Intelligencer article we publish as well as the exclusive daily newsletter, full access to The MediaPost Cases, first-look research and daily insights from Joe Mandese, Editor in Chief.

Commentary

For TV Networks, Too Much Possible Disruption From Google TV?

As a marketing tool, TV networks want their programs to be "searched" for on the Internet -- but not at the expense of ruining their existing financial system.

Meanwhile, Google wants network
programs to be connected more fully to the online world, saying that's what consumers want. TV networks say, not so fast.

Networks already have dealt with the growing advertising-financial
complications pf DVRs and time-shifting. Now Google TV wants to further upset things by giving people access to TV shows through different kinds of services, thus leveling the playing field for
traditional TV networks and online video destinations.

Ironically, one of those services is Hulu.com, with which three of the four leading U.S. broadcast networks are partnered. Google is
negotiating to bring Hulu aboard Google TV.

With a focus on Google's search platform -- still the company's strongest revenue driver -- Google TV could be bad for TV networks by taking
viewers away from their traditional myopic view of where to find major prime-time entertainment.

advertisement

advertisement

Thirty years ago, savvy broadcast network executives might have been worried about the same
thing concerning cable television. And that's actually what happened; broadcast networks' share of the traditional TV prime-time audience is now well below 50%.

Still, for the most part
broadcasters' advertising revenues increased during the period of cable's growth. More recently, it has been a different, down-trending advertising story for some. TV networks don't want the same
thing happening again, out of their control.

Then there are marketing matters to consider. Searching for "the shows you want" sounds good. But how will Google direct viewers on their new
Internet-connected TVs? Will Google offer up "its" own suggestions -- maybe to new online video sites, to Google's own YouTube, to other non-video content?

Time-shifting has already begun
moving people away from traditional live TV airings. Networks are worried, more than ever, that the volume of TV advertising could be rapidly changing.

Seems like there's too much technology and disruption -- and not a clear vision of the new TV
programming-advertising model. Powerful Google still needs big TV/video content to make things work -- which is the only card TV networks have left to play.

Mike Einstein from the Brothers Einstein,
October 25, 2010 at 1:45 p.m.

The only two advantages television enjoys over other media - intrusion and scalable reach - both go out the window once it falls victim to everybody else's schedule instead of its own. In particular, local news, the economic driver in every local TV market will lose its appointment-viewing value.

Program A is on Hulu. Program B is on Google. Program C is on both. Program D is on none. And the consumer cries wee wee wee all the way home. To date, most all programs can be found on one's extended cable system.